Shareholders in Marvell Technology, Inc. (NASDAQ:MRVL) had a terrible week, as shares crashed 23% to US$70.84 in the week since its latest annual results. Revenue hit US$5.8b in line with forecasts, although the company reported a statutory loss per share of US$1.02 that was somewhat smaller than the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Marvell Technology after the latest results.

Check out our latest analysis for Marvell Technology

Taking into account the latest results, the current consensus from Marvell Technology's 35 analysts is for revenues of US$8.21b in 2026. This would reflect a sizeable 42% increase on its revenue over the past 12 months. Earnings are expected to improve, with Marvell Technology forecast to report a statutory profit of US$1.19 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$8.21b and earnings per share (EPS) of US$1.07 in 2026. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target fell 11% to US$116, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Marvell Technology, with the most bullish analyst valuing it at US$140 and the most bearish at US$90.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Marvell Technology's growth to accelerate, with the forecast 42% annualised growth to the end of 2026 ranking favourably alongside historical growth of 16% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Marvell Technology to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Marvell Technology's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Marvell Technology's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Marvell Technology. Long-term earnings power is much more important than next year's profits. We have forecasts for Marvell Technology going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Marvell Technology that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.